1. Place chicken broth in a large saucepan over medium high heat and bring to a rapid boil.
2. Add potatoes, celery, carrots and pepper to the broth.
3. Reduce heat to low.
4. Cover pot and simmer 15 minutes or until vegetables are tender.
5. Combine milk and flour in a small bowl.
6. Stir until flour is dissolved and mixture is smooth.
7. Add flour mixture to the broth and vegetables.
8. Cook over low heat stirring constantly until mixture bubbles and becomes thick.
9. Continue cooking 1 minute more.
10. Add cheese.
11. Stir mixture constantly until cheese has completely melted.
12. Remove from heat.
13. Serve warm with nutmeg sprinkled on top.